Google’s Financials
Google’s (NASDAQ: GOOG) second quarter revenues grew 22% over the year to $16 billion, ahead of the analyst expectations of $15.6 billion. EPS of $6.08 was short of the market’s projections of $6.24 for the quarter. The miss in the earnings was attributed to the increase in costs related to promotion of new products and ventures and the continuing decline in advertising prices.

By segment, revenues from Google-owned sites grew 23% over the year to $10.94 billion and network revenues improved 7% to $3.42 billion. Other revenues grew 53% to $1.60 billion.

By region, revenues from outside the US accounted for $9.33 billion, accounting for 58% of the quarter’s revenues compared with 55% a year ago.

Within mobile apps, Google also acquired Appurify for an undisclosed sum. Appurify’s apps help developers test for optimization of mobile apps and websites. The application operates on a freemium model and will be integrated with Google’s in-house testing service to strengthen the offering.

Google’s Management Change
In a surprise move, Google announced the exit of their chief business officer Mr. Nikesh Arora. The longtime sales chief will be leaving the organization after nearly a decade to head Softbank subsidiary Softbank Internet and Media. For now, Omid Kordestani, senior advisor to Larry Page, will take over Nikesh Arora’s responsibilities.

Meanwhile, Google’s stock is trading at $595.08 with a market capitalization of $402 billion. It touched a high of $604.83 earlier this month. Google’s core business model search advertising is robust and extraordinarily profitable. They have used the profits to branch off into many different areas that have also been successful. The recent IBM-Apple partnership in the mobile enterprise arena is one they now need to think about how to counter. By and large, though, I continue to find Google a compelling company and stock.